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The Irish Fiscal Crisis

Published online by Cambridge University Press:  26 March 2020

Adele Bergin ,
John Fitz Gerald ,
Ide Kearney  and
Cormac O'Sullivan
Adele Bergin
Affiliation:
ESRI, Dublin
John Fitz Gerald*
Affiliation:
ESRI, Dublin
Ide Kearney
Affiliation:
ESRI, Dublin
Cormac O'Sullivan
Affiliation:
ESRI, Dublin
*
e-mail John.Fitzgerald@esri.ie
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Abstract

This paper considers the origins and characteristics of the current economic crisis in Ireland. In particular, it examines how fiscal policy contributed to the crisis rather than preventing it. The paper gives details of the major fiscal tightening that is under way. By 2014 the authorities will have implemented a package of ex ante cuts equivalent to one-fifth of GDP. The costs of this package, together with the more permanent effects of the recession on potential output, are discussed and the legacy effects of the crisis for government indebtedness are analysed.

Keywords

Fiscal policydebt sustainabilityIrelandE62H63H68
Type
Research Articles
Information
National Institute Economic Review , Volume 217 , July 2011 , pp. R47 - R59
Copyright
Copyright © 2011 National Institute of Economic and Social Research

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